WALL STREET JOURNAL: Some officials in Saint-Tropez have calculated that, unless the Swiss franc falls off significantly from the peaks reached in recent days, the interest rate on the 20-year loan signed in 2007 would soar to 30%. ..
In Hungary, dozens of large cities are struggling with Swiss franc debts, and many are negotiating with bankers in an effort to delay repayments that they say they can no longer afford. Many of the Hungarian municipalities issued Swiss franc bonds before the 2008 financial crisis, which started the franc’s spiraling rise. Nearly all the debt is held by local banks.
In addition, households across Hungary, Poland and Croatia have significant Swiss-franc debt, which has been weighing on domestic consumption in those countries, as people use their earnings to pay rising loan installments instead of buying new goods and services. All three nations have taken steps to ease the immediate burden on borrowers.… (more)
